Market Wrap | Stocks Soar as Tech Titans Lead Pre-Holiday Rally Amid Santa Claus Rally Hopes
2min read On December 24th, the U.S. stock market rallied as all three main indices closed higher. The S&P 500 rose 1.10% to 6040.04 points, the Dow Jones Industrial Average improved by 0.91% to close at 43297.03 points, and the Nasdaq Composite increased by 1.35% reaching 20031.13 points. Notably, individual stocks such as MultiPlan and American Battery saw dramatic gains, with MultiPlan soaring by 91.72% and American Battery by 46.07%, while Hour Loop shot up by 207.69%. Conversely, companies like XiaoMa ZhiXing and Nukkleus faced declines.
As the end of the year approaches, trading activity is expected to remain subdued with shortened trading sessions due to the Christmas holiday. Tesla saw a significant uptick of 4% in its stock value, showcasing the continued strength of major technology stocks. Meanwhile, Broadcom’s shares rose over 2%, highlighting investor interest despite reduced trading volumes. The trading week is shortened as U.S. markets will be closed on December 25th for Christmas, with markets closing three hours early on December 24th.
American Airlines experienced notable stock price fluctuation. The company temporarily grounded all domestic flights due to a technical issue, coinciding with one of the busiest travel days of the year, causing investor sentiment to waver before the issue was resolved.
Market experts noted that major technology stocks continue to stand at the forefront of market recovery. With limited trading days left in the year, some investors anticipate a "Santa Claus Rally" to cap off a strong performance. Historically, the S&P 500 index has shown gains in the final five trading days of the year and the first two days of the new year, achieving an average rise of 1.3% since 1969.
Attention remains fixed on potential policy shifts as President-elect Trump's inauguration approaches, with traders analyzing the anticipated economic implications, including possible impacts on inflation and Federal Reserve strategy. As a part of continuous analysis, financial circles closely monitor the adjustments in the Nasdaq 100 index, particularly noting the shifts in stock weightings of companies like Tesla and Meta, which have declined, while tech giants like Apple and NVIDIA have increased.
Amid these developments, the market outlook for 2025 seems cautiously optimistic, with some analysts maintaining a neutral stance on short-term market movements. The resilience of the U.S. economy persistently surprises many, as American markets conclude the year with robust recoveries, contrasted with Europe's ongoing economic growth challenges. The forthcoming induction of new Federal Open Market Committee members further contributes to the banking sector's complexity, especially under the specter of renewed inflation concerns.
Santa Claus may yet grace the market, adding a final flourish to an already robust year, as history hints at an expected uplifting close for the markets, though some speculate the potency of year-end gains may not fully realize the anticipated strength.
